Broadcasters, MSOs on collision course

Meenakshi Verma & Joji Thomas Philip, TNNDec 27, 2007, 02.56am IST

NEW DELHI: Broadcasters and MSOs appear to be on a collision course , this time over tariff fixation in non-CAS areas. While MSOs allege that broadcasters are not agreeing to new prices and are refusing to unbundle their channels, broadcasters believe that MSOs are not sharing subscriber numbers as per regulations. This could mean that the new cable tariffs are not likely to come to force from January 1 and could be delayed. TRAI is also likely to take action against broadcasters for non-compliance.

Indian Broadcasting Federation (IBF) president Jawahar Goel said, " We met with the regulator last week and told them that it is only regulating prices and leaving the issue of connectivity untouched. For broadcasters, the revenues is a combination of connectivity and price. Secondly we also believe that the regulator should address the issue of carriage fee, as broadcasters are paying about Rs 1,400 crore in 150 cities as carriage fee. Also we believe that the tariffs for cities in non-CAS areas should not be categorised as per A, B and C cities but as TAM and non-TAM cities. " He added that TRAI has appreciated the fact these points.

IBF has also asked its members to unbundle their channels and provide individual channels if the MSOs want only certain channels from a bouquet , in order to comply with the regulation. However Mr Goel added, " As per regulation, MSOs should disclose details about their subscriber base and networks if they seek specific channels and reach new tariff agreements with broadcasters. MSO s have not provided these details and are not willing to do so."

When contacted by ET, TRAI chairman Nripendra Misra said,"Broadcasters have gone to court, but they did not get a stay. This effectively means that they have no option but to comply with our regulations. We had even given called a meting with all broadcasters recently and have directed them to comply without any loss of time.

Since the entire process was done through consultations and the regulations were issued in a transparent manner, we see no reason why they cannot comply — so for the time being, we have not warned them and said we would take action. The broadcasters did mention that they were some logistical issues with regard to implementation, but the Authority's response has been that if they do not comply, it would imply that they are not respecting the intentions of the courts."

Meanwhile MSOs claim that the broadcasters have refused to offer their channels as per the new prices Said Ashok Mansukhani, executive vice president, InCablenet, " We have asked broadcaster to unbundle their channels and have written to them about re-negotiating the tariff structure. However very few have responded so far and I wonder how will we meet the January 1 deadline." Agreed Roop Sharma president Cable Operators Federation India (COFI), " TRAI should take action against broadcasters if they do not comply with its order."

In October this year, TRAI announced a cap on pay television prices in non-CAS areas. The regulator has identified and categorised cities as A, B and C cities and fixed a maximum price for cable as per the categorisation.